Understanding zomato business model in simple words



This means that zomato was doing something right, and I decided to read more about its business model, which eventually made me write this article. Restaurants also pay a monthly fee for various services like live tracking, tamper-resistant zomato branded packaging and more. Zomato seeks to ensure the authentic flow of information to help its customers address two key issues, which are what they can eat and where to eat, as a provider of information for the food community. Customers can make payments and share reviews on the basis of their experience from the given payment options. This simplicity promotes the online order of food for food lovers. Intending to enhance the revenue-generating system as well as to develop the services provided, zomato also partnered with various companies this year, creating helpful and beneficial alliances.


Not only did this simply lunch-ordering, but opened up a whole new business for goyal. This is a kitchen infrastructure service offered by zomato, where they will work with certain restaurant owners who want to expand their zomato business model to more locations with minimum cost. It means entrepreneurs can easily establish their restaurant at the right location with minimum fixed and operating costs. Zomato has revolutionized the entire food industry by turning the concept of universal access into reality.


More and more business owners are jumping into the online food delivery system bandwagon as it saves the user’s time and effort. You must be shocked to know that, but the online food delivery market is growing at an annual growth rate of 15.4 % by the year-end 2025. Business model of zomato focuses on providing good quality food delivered to customers home, provide information, partner restaurants, and customer reviews, and revenue generation.


While non- home cooked food is the new trend and with increase in purchasing power, the consumer behaviour for dine-out is changing. Company in 2019 has spent a lot of money in advertisement expenses which has now been recovered. Gradual reduction in advertisement expense as a % of sales will improve the unit economics of business.


Zomato receives a certain percentage of the ticket price from these events. Customer can search for their favorite restaurants and cuisines available in a certain location in zomato. They can also rate their service experience of restaurants in zomato. A good rating on zomato has become synonym with qualitative service and food in the restaurants. Zomato, which started as foodiebay, was established in july 2008 by two iit graduate namely deepinder goyal, and pankaj chaddah.

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